AFIP Certification
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1. (True/False): Ignorance of the False
law will shield you from liability
if you are noncompliant.
2. (True/False): As an F&I manag- True
er working directly with cus-
tomers, you are individually re-
sponsible for your actions and
what you say to each customer.
3. In a typical credit transaction The dealer is the creditor
the (bank)/(dealer) is the credi-
tor.
4. What is a contract? A contract is an agreement involving a promise or set of
promises that the law enforces or protects.
5. The formation of a contract re- 1. Offer
quires three elements: 2. Acceptance
3. Consideration
6. An offer consists of three ele- 1. An expression of a promise or commitment (intent) to
ments: enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this
case, the customer)
7. An offer may be terminated by: 1. An act of the parties
2. The operation of law
8. There are three criteria for the 1. The offer is accepted by one who is entitled to accept
acceptance of an offer: 2. The acceptance takes the proper form and is timely
, AFIP Certification
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3. The terms of acceptance reflect closely the terms of the
offer and, therefore, do not amount to a counteroffer
9. The Statute of Frauds Generally requires that all contracts involving the sale of
goods for a price of $500 or more be in writing.
10. The Statute of Frauds requires a $500
written contract for the sale of
goods for a price of _______ or
more.
11. What is required in order for the The parties to the contract must be of legal age under the
parties (the individuals entering laws of the state in which the contract is written.
into the contract) to have "legal
capacity?"
12. Criteria that can block the for- 1. The need for a written agreement under the Statute of
mation of a valid contract: Frauds and certain provisions of the Uniform Commercial
Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
13. What is "consideration" as it ap- The requirement that each party to the contract receives
plies to a contract? something of value in exchange for what is given.
14. Finance Charge The Finance Charge is the resulting dollar amount calculat-
ed by applying the Annual Percentage Rate to the Amount
Financed over the term of the contract.
15. How the Itemization of Amount 1. Cash Price (Agreed to price of vehicle)
Financed is completed 2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpay-
ment)
, AFIP Certification
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4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
16. 4 Key Sections of an installment Section A) General Information -- Identifies the parties to
sale contract the agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
Section C) Insurance-Related Disclosures --Credit insurance
is optional
Section D) Signature Blocks - Notice to Buyer Disclosures
--Bind all parties to contract
17. The introductory information Promise to Pay - This section outlines the purpose of the
and promise to pay contained in transaction and the primary obligations that will be incurred
Section A of Retail Installment from signing the contract.
Form
18. The difference between full or Essentially determines the length of time, if any, the seller
partial recourse and no re- is responsible for the actions of the buyer.
course assignments.
19. Warranty disclaimers do not ap- Manufacturer's
ply to _______ warranties on new
or used vehicles to which that
warranty still applies.
20. A(n) _______ clause allows the Acceleration
creditor to declare the entire
outstanding balance due and
payable.
, AFIP Certification
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21. As recorded on an installment -Payments
sale agreement, the total sale -Downpayment
price or deferred contract price -Net Trade-In
would be the total of the
________.
22. Which is NOT listed as a man- Holder-in-Due Course Notice
dated TILA box disclosure?
23. In most states, the _______ is Buyer's Guide
deemed to be part of the pur-
chase agreement.
24. (True/False) Because the late False
charges that may be imposed
on an installment sale agree-
ment are regulated at the state
level, the amount of the late
charge is NOT a required disclo-
sure item.
25. At the time of consummation, Customer, Dealer
an installment sale contract is
between the _______ and the
_______.
26. The Truth in Lending Act and Personal, Family or Household
Reg. Z govern installment sale
transactions for vehicles pur-
chased for what type(s) of uses?
27. The total sale price
Study online at https://quizlet.com/_26p7me
1. (True/False): Ignorance of the False
law will shield you from liability
if you are noncompliant.
2. (True/False): As an F&I manag- True
er working directly with cus-
tomers, you are individually re-
sponsible for your actions and
what you say to each customer.
3. In a typical credit transaction The dealer is the creditor
the (bank)/(dealer) is the credi-
tor.
4. What is a contract? A contract is an agreement involving a promise or set of
promises that the law enforces or protects.
5. The formation of a contract re- 1. Offer
quires three elements: 2. Acceptance
3. Consideration
6. An offer consists of three ele- 1. An expression of a promise or commitment (intent) to
ments: enter a contract
2. An expression of definite and certain terms
3. The communication of the offer to the offeree (in this
case, the customer)
7. An offer may be terminated by: 1. An act of the parties
2. The operation of law
8. There are three criteria for the 1. The offer is accepted by one who is entitled to accept
acceptance of an offer: 2. The acceptance takes the proper form and is timely
, AFIP Certification
Study online at https://quizlet.com/_26p7me
3. The terms of acceptance reflect closely the terms of the
offer and, therefore, do not amount to a counteroffer
9. The Statute of Frauds Generally requires that all contracts involving the sale of
goods for a price of $500 or more be in writing.
10. The Statute of Frauds requires a $500
written contract for the sale of
goods for a price of _______ or
more.
11. What is required in order for the The parties to the contract must be of legal age under the
parties (the individuals entering laws of the state in which the contract is written.
into the contract) to have "legal
capacity?"
12. Criteria that can block the for- 1. The need for a written agreement under the Statute of
mation of a valid contract: Frauds and certain provisions of the Uniform Commercial
Code (U.C.C.)
2. The need for legal capacity of a party to contract
3. The act of fraudulent inducement
13. What is "consideration" as it ap- The requirement that each party to the contract receives
plies to a contract? something of value in exchange for what is given.
14. Finance Charge The Finance Charge is the resulting dollar amount calculat-
ed by applying the Annual Percentage Rate to the Amount
Financed over the term of the contract.
15. How the Itemization of Amount 1. Cash Price (Agreed to price of vehicle)
Financed is completed 2. Total Downpayment
3. Unpaid Balance of Cash Price(Cash Price-Downpay-
ment)
, AFIP Certification
Study online at https://quizlet.com/_26p7me
4. Other Charges (GAP, VSC, Etc.)
5. Amount Financed
16. 4 Key Sections of an installment Section A) General Information -- Identifies the parties to
sale contract the agreement.
Section B) Mandated Disclosures -- Disclosures required by
TILA
Section C) Insurance-Related Disclosures --Credit insurance
is optional
Section D) Signature Blocks - Notice to Buyer Disclosures
--Bind all parties to contract
17. The introductory information Promise to Pay - This section outlines the purpose of the
and promise to pay contained in transaction and the primary obligations that will be incurred
Section A of Retail Installment from signing the contract.
Form
18. The difference between full or Essentially determines the length of time, if any, the seller
partial recourse and no re- is responsible for the actions of the buyer.
course assignments.
19. Warranty disclaimers do not ap- Manufacturer's
ply to _______ warranties on new
or used vehicles to which that
warranty still applies.
20. A(n) _______ clause allows the Acceleration
creditor to declare the entire
outstanding balance due and
payable.
, AFIP Certification
Study online at https://quizlet.com/_26p7me
21. As recorded on an installment -Payments
sale agreement, the total sale -Downpayment
price or deferred contract price -Net Trade-In
would be the total of the
________.
22. Which is NOT listed as a man- Holder-in-Due Course Notice
dated TILA box disclosure?
23. In most states, the _______ is Buyer's Guide
deemed to be part of the pur-
chase agreement.
24. (True/False) Because the late False
charges that may be imposed
on an installment sale agree-
ment are regulated at the state
level, the amount of the late
charge is NOT a required disclo-
sure item.
25. At the time of consummation, Customer, Dealer
an installment sale contract is
between the _______ and the
_______.
26. The Truth in Lending Act and Personal, Family or Household
Reg. Z govern installment sale
transactions for vehicles pur-
chased for what type(s) of uses?
27. The total sale price
